NYDFS approves Gemini and Paxos to offer USD-pegged stablecoin

The New York State Department of Financial Services (NYDFS) has announced that it has authorized Gemini Trust Company and Paxos Trust Company to offer stablecoin, pegged to the U. S. dollar.

“These approvals demonstrate that companies can create change and strong standards of compliance within a strong state regulatory framework that safeguards regulated entities and protects consumers,” DFS Superintendent Maria T. Vullo said.

DFS issued a limited purpose trust company charter in May 2015 to itBit, now Paxos Trust Company, which operates the itBit exchange, to offer services for buying, selling, sending, receiving, and storing virtual currency. In the same year, it issued a limited purpose trust company charter to Gemini to operate a virtual currency exchange through which it offers customers services for buying, selling, sending, receiving, and storing virtual currency.

Paxos Standard “PAX”

In an official release, Paxos has announced the launch of a new stablecoin – “Paxos Standard” or PAX.

The company describes Paxos Standard as the world’s first regulated crypto asset, fully collateralized 1:1 by the U.S. dollar. Issued by the Paxos Trust Company, PAX is approved and regulated by the NYDFS.

Built on the Ethereum blockchain, Paxos Standard can move instantaneously anywhere in the world along with offering benefits unique to crypto-assets such as immutability and decentralized accounting.

"Paxos Standard gives financial markets the power to transact in a fully USD-collateralized asset with the benefits of blockchain technology and oversight from financial regulators," said Charles Cascarilla, CEO and co-founder of Paxos. "We believe that Paxos Standard represents a significant advancement in digital assets, leveraging the oversight and stability of the traditional financial system and enabling a frictionless global economy."

Gemini dollar

Gemini has officially announced its stablecoin, which it calls the “Gemini dollar” – strictly pegged 1:1 to the U.S. dollar. Gemini dollar (ticker symbol: GUSD) is built on the Ethereum network according to the ERC20 standard for tokens.

In an official post dated September 10, Cameron Winklevoss, co-founder and President at Gemini, said:

“Starting today, September 10, 2018 at 10am ET, you will be able to convert U.S. dollars in your Gemini account into Gemini dollars and withdraw them to an Ethereum address you specify. You will also be able to automatically convert Gemini dollars into U.S. dollars by depositing them into your Gemini account.”